Premium Subsidies, Efficiency Loss and Externalities of Agricultural Target Price Insurance---A Theoretical Framework

DOI

10.2991/rac-16.2016.91How to use a DOI?

Keywords

target price insurance; premium subsidies; externalities; efficiency loss

Abstract

In the study, analyzes and define the agricultural target price insurance. Then researches the mechanism of the premium subsidies and direct subsidies and think that the premium subsidies will result in losing efficiency. Find the causes and extent of efficiency loss and concluded By constructing the expected return model of Chinese farmers and insurance institutions: Market risk is key of agriculture and implementation of the target price insurance need to rely on government subsidies. The total subsidy shall be equal to the actual subsidy and efficiency loss. The efficiency loss of subsidies was paid for negative externalities caused by the moral hazard and the greater the loss of efficiency, the lower the actual farmers' subsidy effect.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Liang Zhao
AU  - Lei Xu
AU  - Ningning Zhang
PY  - 2016/11
DA  - 2016/11
TI  - Premium Subsidies, Efficiency Loss and Externalities of Agricultural Target Price Insurance---A Theoretical Framework
BT  - Proceedings of the 7th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention
PB  - Atlantis Press
SP  - 564
EP  - 568
SN  - 1951-6851
UR  - https://doi.org/10.2991/rac-16.2016.91
DO  - 10.2991/rac-16.2016.91
ID  - Zhao2016/11
ER  -